EIB and Piraeus Bank Launch €200M Financing Push for Greece’s Security and Defence Industry

Beyond the financial impact, the EIB’s participation sends a strong market confidence signal, helping to reduce perceived risk and catalyse further capital flows into the sector.

The European Investment Bank (EIB) has signed a €100 million financing agreement with Piraeus Bank, marking a landmark first for Greece as the country’s first EIB intermediated operation dedicated to the security and defence sector.

Channelled through Piraeus Bank, the funding will be on-lent primarily to small and medium-sized enterprises (SMEs) and mid-cap companies active in Greece’s security and defence ecosystem, in line with EIB eligibility criteria. Including expected leverage, the operation is projected to mobilise up to €200 million in total financing for targeted businesses.

Closing a Critical Financing Gap in a Strategic Sector

The initiative directly addresses structural financing constraints faced by defence-related SMEs and mid-caps—particularly those engaged in dual-use technologies, innovation, and specialised manufacturing. These challenges are amplified in Greece, which is classified in its entirety as an EU Cohesion region, where access to long-term, tailored capital remains limited.

By deploying EIB long-term funding, the operation will improve borrowing conditions through lower interest rates, longer maturities, and increased risk-sharing, while also crowding in additional private investment.

Beyond the financial impact, the EIB’s participation sends a strong market confidence signal, helping to reduce perceived risk and catalyse further capital flows into the sector.

Anchored in the EIB’s Pan-European Security & Defence Programme

The transaction forms part of the EIB’s Pan-European Security & Defence Lending Envelope, a flagship programme designed to strengthen Europe’s industrial and technological base in security and defence.

The EIB recently expanded the envelope to €3 billion, up from €1 billion, reflecting growing EU-wide demand for resilient defence supply chains. With this agreement, Piraeus Bank becomes the first bank in Greece and the third in Europe—after Germany and France—to participate in the programme.

“This agreement marks a milestone for Greece and for the EIB,” said Yannis Tsakiris, EIB Vice-President.“By bringing security and defence financing to Greece, alongside green transition, innovation and cohesion, we are strengthening competitiveness, resilience and Europe’s strategic autonomy.”

Supporting Innovation, Dual-Use Technologies and Industrial Upgrading

Christos Megalou, CEO of Piraeus Bank, highlighted the broader economic impact of the partnership.

“This agreement establishes a dedicated financing framework for a sector of growing strategic importance,” he said. “It expands access to targeted funding for SMEs and mid-caps, supports investment in innovation and dual-use technologies, and contributes to building a competitive and resilient industrial ecosystem in Greece and across Europe.”

The operation is expected to support investment, working capital, and productive upgrading, reinforcing Greece’s role in European and NATO-aligned defence supply chains.

A Longstanding Partnership Scales into New Strategic Territory

The agreement builds on a long-standing partnership between the EIB and Piraeus Bank, which has played a central role in deploying EIB-backed programmes in Greece across green finance, innovation, cohesion, and capital markets development.

With security and defence now added to this portfolio, the partnership reflects a broader shift in EU financing priorities—recognising defence industrial capacity as a pillar of economic resilience and strategic sovereignty.

Why It Matters

As Europe accelerates efforts to reinforce its security and defence capabilities, access to affordable, long-term finance for SMEs and mid-caps has emerged as a critical bottleneck. This transaction positions Greece as an active participant in Europe’s defence industrial expansion, while setting a precedent for further intermediated operations across the EU.

For defence innovators, manufacturers, and investors, the message is clear: security and defence are now firmly embedded in the EIB’s strategic financing agenda.